South Africa’s 10-year government bond yield edged up to around 8.83%, as investors reassessed the outlook for interest rates amid a widening Middle East conflict. Locally, the focus shifted to next week’s inflation data and the South African Reserve Bank’s policy decision. The SARB faces another delicate decision on Sept. 23, with elevated fuel prices and persistent inflation pressures weighing against a weakening economy. The central bank kept its benchmark interest rate unchanged at 7% in July, surprising investors and economists after delivering its first hike in three years in May. Inflation eased to 4.3% in July from a peak of 5% in June, but the SARB expects it to remain above 4% through the rest of 2026. Meanwhile, households have recently lowered their inflation expectations, but the economy fell back into contraction in Q2. The mixed signals have kept economists divided over whether a rate hike is coming or policymakers will opt to hold.